HomeMy WebLinkAbout2024-06-06; Status of Negotiations with SDGE and NRG for Seaside Option (District 2); Barberio, Gary,,, ..
To the members of the:
CITY COUNCIL /
Date lo J1o /2,l-CA ~cc~
CM ~LDCM (3)~
June 6, 2024
Council Memorandum
To:
From:
Via:
Honorable Mayor Blackburn and Members of the City Council
Gary T. Barberio, Deputy City Manager, 7~mmunity Services
Geoff Patnoe, Assistant City Manager ~
{city of
Carlsbad
Memo ID# 2024042
Re: Status of Negotiations with SDG&E and NRG for Seaside Option (District 2)
This memorandum is to provide an update on the status of negotiations with San Diego Gas &
Electric (SDG&E) and NRG for the Seaside Option, which involves onsite reconfiguration and
rebuilding of SDG&E's North Coast Service Center and the transfer or dedication of various
property to the city.
Background
On March 26, 2024, the City Council adopted a resolution extending the deadline for terminating
negotiations to relocate SDG&E's North Coast Service Center and directing staff to continue
negotiations with SDG&E and NRG on the Seaside Option and to return to the City Council by
July 31, 2024, or sooner, with an agreement for the City Council's consideration. At that meeting,
staff also committed to continue to provide progress updates to the City Council via
memorandums.
Discussion
Since the March 26, 2024, City Council meeting, the city's negotiators, including the City Attorney
and the Deputy City Manager of Community Services, have been working diligently with SDG&E's
and NRG's teams to develop an agreement acceptable to all parties. The teams have generally
met weekly and have continued to circulate and revise the draft agreement.
While the parties generally agree on the major deal points, the details of accomplishing these
deal points are complex and reducing them to writing is challenging. Further complicating the
drafting process is the agreement's contingency on approvals not only from the parties, but from
regulatory bodies including the city, the California Coastal Commission, and the California Public
Utilities Commission. The agreement needs to fully capture the process for seeking these
approvals.
The city's negotiators believe SDG&E and NRG continue to be sincere in their commitment to
reach an agreement, both because they have devoted significant resources to the effort and
because the agreement has unique benefits to them. While the three parties continue to make
significant progress towards completing a draft agreement, the parties are not yet able to
Community Services Branch
799 Pine Avenue, Suite 200 I Carlsbad, CA 92008 I 442-339-2822 t
Council Memo -Status of Negotiations with SDG &E and NRG for Seaside Option
June 6, 2024
Page 2
present a draft agreement to the City Council for its consideration. City staff anticipate that it will
take the full amount of the four additional months granted by the City Council, if not a little
longer, to complete the draft agreement. Staff believe that by the July 31, 2024, deadline we will
be able to have at least identified and docketed the draft agreement for a City Council meeting
for a date certain.
Next Steps
Until the agreement is completed and presented to the City Council for their review and
approval, staff will continue to provide progress updates to the City Council via memorandums.
cc : Scott Chadwick, City Manager
Cindie McMahon, City Attorney